Original Article The four pillars: Developing a ‘ bonded ... · They often include multiple contacts at differing levels across a large ... the importance of the overall B2B relationship:

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Correspondence: Mark Hollyoake Springboard Commercial Solutions Ltd, Southern Offi ce, 17 Queens Road, Teddington, Middx TW11 0LX, UK Web: www.springboardcs.com

Original Article

The four pillars : Developing a ‘ bonded ’ business-to-business customer experience Received (in revised form): 21st April 2009

Mark Hollyoake is a founding partner and Co-director of Springboard Commercial Solutions Ltd. In his role as Company Director, Mark has worked across many industry sectors, companies and retailers throughout Europe. Mark ’ s expertise is focused on Customer Experience (CE) and Customer Management (CM) strategy development, CM evaluation and execution of CE / CM improvement plans (inc. organisational modelling), partnership and alliance development, and management and implementation programmes. Mark is the author of a recently published research report on customer experience: Mutual appreciation – Who stands out in the building society crowd? He is a member of the Chartered Institute of Marketing (CIM) and Institute of Sales and Marketing (ISM).

ABSTRACT This paper is an investigation into the business-to-business experience (B2BE), how it differs from the business-to-consumer experience (B2CE) and the core elements of a bonded B2BE. Much of the current ‘ wisdom ’ about customer experience relates to the B2C domain. This is because the largest budgets are within the B2CE sector. Throughout B2BE, there is limited genuine hard evidence-based research and correlation to academic theory. This raises questions over the validity / value of much that is written or spoken on the subject in relation to the B2B sector. Within the B2B sector, the absolute number of customer relationships may be fewer, but they are far more complex. They often include multiple contacts at differing levels across a large number of touchpoints. Customers themselves are becoming more vocal, sophisticated and demanding around what they expect. Consolidation brings with it leverage and an ability to become more demanding of the supplier base. Before embarking upon the pursuit of a bonded experience with every customer, it is important to understand the importance of the overall B2B relationship: the investment value input into the experience needs to match the level of value gained. In essence, segment your customers fi rst, and be clear where and with whom to develop experience at the appropriate level. This paper uncovers a layered approach to the B2BE. The involvement of professionals, with a rational and detached nature to expectation management and experience, also comes through in terms of the key factors at each level. At base, the key drivers revolve around the buyer(s) and the expectations of procurement teams that it is possible to do business: their experience tells them whether or not a business partner can fulfi l the base level. It is about reliability, consistency, dependability, problem resolution, appropriate contact, choice and fl exibility. Once an organisation has achieved the delivery of a consistent experience that meets base expectations, this paper identifi es key areas that enhance the B2BE. These coalesce around co-creation of value, strategic understanding and contact at all levels across the organisation, working within strategic business units, fl exibility and pro-activity. Finally, the relationship moves into what is described as a ‘ bonded experience ’ . Nearly all the research points to trust as being at the centre of the bonded experience. Supplementary

© 2009 Palgrave Macmillan 1741-2439 Database Marketing & Customer Strategy Management Vol. 16, 2, 132–158

Developing a ‘ bonded ’ business-to-business customer experience

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INTRODUCTION This paper takes the view that the business-to-business (B2B) customer experience is all about

Understanding the experience expectations you are creating as an organisation with your customers and how they manifest themselves as real experiences across all the touchpoints and all levels of contact as the business relationship develops.

It is critical to understand where the experience is enhancing or destroying value (in the mind of the customer), and what customers remember after the experience.

Within a B2B relationship (versus business-to-consumer (B2C)), the experience is an integral part of the overall customer management (CM) dynamic / proposition. Contact will typically be more frequent across more touchpoints, and may potentially involve many individuals from various functions.

Customer experience is becoming more important within a B2B context.

Across a range of sectors – retail, utilities, telcos, pharmaceuticals, food and drinks – the customer base is consolidating and doing so fast.

As these customers consolidate, they represent higher value and become more sophisticated and demanding. Within this challenging environment, suppliers vie for share, product listings, promotional feature

and / or infl uence within the tendering process. Additional dimensions are required within the proposition to differentiate one supplier from another; some use price and terms and the smart ones use the customer experience.

Customers are also starting to use business models that differ from the traditional buying organisation – from virtual organisations (VOs) to intermediating to bundling / on-sell. Some of these models require a high level of CM, and within this the customer experience is a key differentiator.

By way of example, a design agency has a high level of contact with its client base, yet is only as good as its last job. The clients have a very high lifetime value, yet remain fi ckle from a client relationship / loyalty perspective. As long as the experience they receive lives up to pre-conceived expectations, the customer stays – all other things being broadly equal – but if the experience slips below expectation, they go elsewhere.

A key difference between B2C and B2B is that in B2C, individual consumers simply vote with their feet if things go wrong. In B2B, the customer is likely to complain to the department that fails to meet expectations or to the account manager. If communication / action is rapid and effi cient, the level of customer loyalty can actually improve; if it remains unacceptable then the

areas that support trust at this level to develop a bonded experience are also identifi ed. These are communication, interdependence and integrity. It is not so much the relationship or the way customers are managed that differentiates as this has become broadly similar. It is the experience developed through the relationship that makes the difference. Journal of Database Marketing & Customer Strategy Management (2009) 16, 132 – 158. doi: 10.1057/dbm.2009.14

Keywords: business-to-business customer experience ; customer management ; ease of doing business ; customer relationship management ; trust ; integrity ; communication ; interdependence


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customer will start to shop around for alternative propositions.

B2B customers are more likely to demand a certain experience package as part of a tendering process, and to actively monitor progress against their key experience performance indicators.

Significant amounts of money have been invested into CM improvement programmes. Coupled to this is systems development around customer relationship management (CRM), which aims to formalise CM within the organisation via CRM systems. Although the development has been patchy with initially high failure rates on CRM system implementation, things have moved forward. As CRM becomes a norm, it is becoming increasingly difficult to realise significant competitive advantage through its implementation, and for this reason organisations are exploring customer experience as an alternative avenue for potential competitive advantage.

B2B organisations therefore need to ensure that customers ’ satisfaction with their experience is ‘ hard wired ’ into their monitoring and corrective action taken promptly.

The increased transparency and access to customer information that IT advances bring makes comparative analysis progressively quicker and easier to undertake. Commoditisation is becoming the norm: product quality and functionality – from ‘ widgets ’ in cans of beer to 1500 spin speed washing machines – are becoming hygiene factors, and thus the only way to stand out from the competition is often through customer experience.

The smartest suppliers combine product innovation with superb customer / consumer experiences (CEs): Dyson combines innovative vacuum cleaners with the fantastic guarantee that any faulty product will be returned or immediately repaired by a Dyson engineer.

One positive by-product of an increasingly customer-centred organisation is the development of customer segmentation. This often manifests itself in a segmented approach to CM, recognising the differing needs / wants of various consumer groups. The next and natural step from basic segmentation is the refl ection of a tailored customer experience based on customer segment expectations. Basically, this means that customers pay only for the experience they value: the danger is that organisations offer a great experience that is not valued and can then be undercut by a competitor who more accurately refl ects the customers ’ needs.

WHAT ARE THE ISSUES?

1. Most of what is written / espoused from conference platforms about customer experience relates to the B2C domain. This is because in most cases, the larger budgets sit within the B2C sector. Across the board in the territory of B2B CE, there is limited genuine hard evidence-based research and correlation to academic theory. This raises questions about the validity / value of much that is written or spoken on the subject.

2. Within the B2B sector, the absolute number of customer relationships may be fewer, but they are far more complex. They often include multiple contacts at differing levels across a large number of touchpoints. The danger from the suppliers perspective is that what may appear a trivial element of the B2B CE can become a real ‘ moment of truth ’ , which leads to losing a major piece of business – for this reason it is critical to monitor the experience, and to ask the customer how they perceive the experience being received. Only by pro-actively resolving experience issues is it possible to reduce the risk of loss. A major part of the account manager ’ s role should be the constant monitoring



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of all experience touchpoints: where they fi nd dissatisfaction (or opportunities for improvement), they should be working actively to resolve those issues.

3. Customers themselves are becoming more vocal, sophisticated and demanding around what they expect. Consolidation brings with it leverage and an ability to become more demanding of the supplier base.

The issue is that they may well not be forthcoming as to their expectations. Yet matching experience to expectation is becoming ever more critical as margins become tighter: suppliers cannot afford to offer non-valued experiences. For this reason, the best account directors are ‘ bonded ’ with their customers and know how the experience is progressing literally day by day.

WHAT IS THE OPPORTUNITY? This can be found in three key areas:

1. The ability to use CE as a key differentiator and competitive advantage when doing business.

2. Creation of increased value through joint working around customer experience development. Working through the B2B2C – helping your B2B customers right through the supply chain to the consumer, and actively managing both links / experiences.

3. Retaining customers because of the experience they receive from you over the competition.

APPROACH Data were gathered from three sources:

Practical experience insight from senior managers engaged within the B2B sector, using structured interviews; Literature review; Published research on B2B experience.

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Within the B2B sector, professionals are often the key experience interface. They may develop a far more rational and detached approach to the delivery of expectations through the experience. They are also acting on behalf of the organisation or a third party to achieve business objectives or meet specifi c needs.

This means that they need to be able to depend on an offering to support their position and de-risk any decisions they make. The product / service should drive downstream value: in addition, it will require reliability, consistency and reassurance that this can be achieved either on a one-off basis or time and time again.

FINDINGS This section looks in depth at the Spring - board Commercial Solutions (SCS) experience, as well as available literature and research.

The research element of this paper has been diffi cult because of the limited nature of actual research in the area of B2B CE. The B2B customer experience does not operate in isolation, and key agents within the B2B experience will be taking a lead from their experiences as consumers. Where possible – and feasible – the paper has looked for indicative direction within robust B2C CE research.

The SCS experience Members of the SCS partnership have spent all of their working careers involved in one shape or form within the B2B environment. This has been enriched through CM projects within B2C organisations and sectors. Practical experience has been harnessed to develop insights using structured interviews on a one-to-one basis.

This led to an identifi cation of an increasing level of sophistication in the way businesses interact with each other. This has made it increasingly diffi cult to differentiate propositions, as standards have improved.


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Using ‘ one to one ’ structured interviews, the following areas were explored:

Supply chain How do you think the supply chain has changed and has this offered any benefi ts? Signifi cant investment, resources and development have and continue to be made within the supply chain. This has released value within the total value chain, and led to service level improvements.

Segmentation Do organisations operate any form of segmentation that recognises value potential, similarity of needs and behaviours / traits? Many of the companies SCS has worked for have in place some sort of customer segmentation framework or approach. This is often used to identify where value potential exists, and to allow prioritisation of resources and focus to sales and marketing activity. This has led in some instances to a differentiated sales approach to the different customer segments and customers receiving a different experience from the organisation to meet their needs.

Technology What changes have occurred within information technology and has this offered any benefi ts? The development of single systems and Enterprise Resource Planning (ERP) platforms is one of the key areas where real innovation has been witnessed with the value chain and customer / supplier interface.

Electronic data interchange has improved the supply of real-time sales information, improving effi ciency within stock management and forecasting. Managed auto inventory and replenish ment has seen some customers in some sectors allowing the supply organisation to control the stock, only paying once the brand or product is used or sold.

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Web-based ordering, where the customer can interface with the organisation through a web portal. Online information allows customers to access product information and download sales materials. This is often password protected to allow tailoring and personalisation.

However, SCS has encountered few examples of technology being harnessed to monitor the customer experience: this is considered to be a desirable future avenue for development.

Joint working How has the supplier / customer interface and relationship developed? SCS has found an increasing move towards joint working within the B2B relationship through project teams or more formal and structured ‘ strategic business units ’ . This has come about as both sides pursue value-creation opportunities within the value chain.

Working in this way requires a signifi cant amount of trust, respect, communication, interdependence, shared values and an understanding of mutual needs. B2B experience monitoring should form an integral part of true joint working, with an agreed monitoring / review and adjustment process forming a key part of the overall relationship management process.

Contact framework What are the differences and changing dynamics within B2B contact? Within a B2B relationship, the contact framework operates as a multitude of levels across numerous functions ( Figure 1 ), if the relationship is to be value-enhancing.

From Figure 1 Buyer – Business Manager To Figure 2 Function Contact – Function Contact

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The relationship is managed by a lead person in each organisation or a team leader ( Figure 2 ), who is responsible for setting the expectations and delivering the experiences. Contact is

often conducted across a number of media:

Face to Face; E- Mail and Paper-based mail;

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Figure 1 : Embryonic early satge B2B relationship development.

Figure 2 : Multi level, advanced B2B relationship development.


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Telesales – phone; Web; Customer Service.

A key factor within the B2B experience is the provision of a regular value-enhancing contact framework: despite the technology revolution, personal contact is still important.

In deciding on a review process, all touchpoints must be considered, and a monitoring process be put in place to ensure that the full experience is being assessed and issues highlighted.

Customer needs and strategy As suppliers and customers have come more closely together, what changes have occurred and has this led to any benefi ts? This is a key area of experience enhancement within the B2B sector. Customers expect the organisation to understand their needs and on an advanced level their strategy. With these latent and sometimes explicit expectations the brand / organisation should provide experiences that ensure that the customer thinks, feels, sees and hears you trying to explore their needs or defi ne and understand their strategy.

SCS has identifi ed the following traits as being central to the experience within a B2B relationship. This differs signifi cantly from the B2C relationship ( Table 1 ).

Literature review Much of the literature focused on the customer experience emanates from the business / brand / service to CE.

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Smith and Wheeler (2002) highlight how the customer experience is actually infl uenced by and through the expectations the organisation creates for its brand, service and products. The experience the organisation then delivers will be evaluated by the consumer to determine how closely it matched the expectation. This paper takes the view that this also holds true within the B2B sectors.

Smith and Wheeler go on to explain that once an organisation has mastered this, it is possible to explore what target customers want and develop these into expectations delivered through the experience. In essence, the organisation starts to manage the experience it delivers to ensure that it matches the customer ’ s expectations.

Given the regular contact and transaction pattern within the B2B relationship, this approach is more important within this sector, offering a real opportunity to differentiate within this area ( Table 2 ).

We view this as a key foundation upon which the B2B experience differentiates from the B2C. However, procurement professionals are also consumers, and are not immune from the infl uence of good customer experiences as consumers. They may take this thinking across into the B2B environment.

He also highlights the importance of intermediates and the consideration of the end consumer within a B2B context. Will their experience enhance the B2B experience, that is, easy-to-use technological gadgets, mobile phone and so on? In other

Table 1 : Traits central to the experience within a B2B relationship

At a core level At a differentiated level At a bonded / advanced level

• Understand Needs • Shared value exchange • Trust • Do what you say • Understand strategy • Communication • Do it consistently • Contact at all levels across all functions • Co-working • Solve my problems • Right fi rst time every time • Shared strategy / Vision • Access • Acting with integrity • Personal contact • SBUs • Intertwined proposition

Source : SCS 2009.



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words, even within the B2B experience it is worth considering the impact that changes to the product or proposition may have on the (end) B2C experience.

Shaw in his book Revolutionise your customer experience 2 points to four levels of potential experience an organisation can achieve:

Na ï ve Transactional Enlightened Natural

He goes onto explain how these four levels revolve around:

People Strategy Systems Measurement Channel approach Expectations Marketing and brand Process Culture and leadership

These are broken out to identify what needs to be in place to achieve the various stages on the way a natural customer experience (the stage and traits are found in Appendix A ).

This appears logical and eminently sensible; however, the expectations the organisation creates may be considered a manifestation of the other elements on Shaw lists.

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Schmitt advocates the identifi cation of the touchpoints where customers come into contact with the organisation, brand, service and / or product, followed by developing the typical journey a customer makes when interacting with the organisation.

Although this may work for one-off transactions or complete transactions, it starts to appear fl awed when the principle is applied to regular relationships that may resemble more a ‘ pinball machine ’ than journey. However, certain contact patterns should be regular and can be mapped. Unfortunately, within a B2B relationship, complexity and the constant ability of the customer to detour – to move away from the offi cial journey – makes it extremely diffi cult to map.

Smith and Wheeler explore where the key points of infl uence (POI) and moment of truth (MOT) exist for the customer within the interactions they have with the organisation, brand, service and / or brand.

They offer a more manageable approach to the B2B environment, and enable the application of a managed approach to the experience. The organisation can identify areas where competitive advantage can be developed through specifi c POI / MOT. Unfortunately, the literature falls short in identifying what is important to B2B customers, and the varying levels of experience development.

The literature review is extended here in order to try and fi nd links between certain experiences and their importance within the B2B customer experience.

Table 2 : Key differences between the B2C and B2B CE (Bernd H Schmitt, Wiley 2003 1 )

B2B B2C

Acting on behalf of the business to meet a business goal, need or objective.

Acting to meet personal needs.

Business customer, buying is a job. They are unlikely to use the product.

Can be affected – consciously or unconsciously by product design, branding, advertising and so on within a lifestyle context. Go to the stores and may make a rational, impulse or just window shop.

Can they use the product to produce other value added and whether they can run a successful business?

Make rational decisions about a purchase at times, but are just as likely to be motivated by emotion, intuition and impulse.


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Schmitt points to three factors within the experience: time, style and fl exibility. He defi nes these as shown in Table 3 .

Smith and Wheeler describe the dimensions of customer experience they use for mapping the CE. These have been developed from focus groups and analysis, and are also identifi ed by Texas A & M University. These factors also resonate within the B2B environment and are worth considering, as well as the mapping areas ( Table 4 ).

These provide a useful cross-reference or start point to interrogate the B2B customer experience research.

Research It is also clear that limited robust research exists in respect of the B2B CE. This paper looks at research that directly addresses the B2B experience and

indirectly to pull out the key fi ndings and common themes.

Common across the research is the theme of trust as one of the key foundations of a B2B CE. Within the VOs researched, four pillars were identifi ed that were core to their CM, offering them bonded / intimate relationship opportunities with their customers. These formed around trust, integrity, interdependence and communication. The research conducted by Henley Business School (Lemke et al 5 ) highlighted both the depth (level) and breadth (key areas for each level) of the experience

The research provides indicative insight into the B2B CE, operating on a number of levels against key characteristics at each level. It points to the achievement of a bonded / intimate relationship revolving around four key elements. However, to get

Table 3 : Time, style and fl exibility

Time Interface exchanges and interactions, by their very nature, extend over time. This raises the issue of how the customer contact should be phased over time.

Style Refers to the manner of expressing the essence and fl exibility of the interface and tangibles associated with it. Often the interface is unbalanced: too much style (hype / fake friendliness), too little sales substance.

Essence and fl exibility To structure the customer interface the essence has to be determined (key operations, interactions and exchanges) Flexibility is also essential to turn the sales space into a living space.

Source : Schmitt, Wiley 2003.

Table 4 : Dimensions of customer experience

Mapping area Detail

Customer satisfaction

Reliability Ability to perform the promised service dependably and accurately.

Tangibles Physical facilities, equipment and appearances of personal. Empathy Caring, individualise attention the organisation provides its customers. Responsiveness Willingness to help customers and provide prompt service.

Product quality Grade Refers to the image, design or quality of attributes or features, and the care with which the product or service is made or performed.

Fitness for use Refers to clients ’ needs or requirements for performance. Conformance to

specifi cations Refers to required standards and specifi cations.

Cost Price Has to do with the quoted price of the product or service, what the customer is expected to pay.

Source : Smith and Wheeler, 2002 3 .



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to this level of relationship, a number of key elements of the experience have to be operating on a consistent basis that meets the expectations the organisation is creating. Further research is required in this area to establish the relative importance of each element to the movement between levels.

Research into B2B VOs (Hollyoake 4 ) highlighted the following key fi ndings that can be drawn upon to inform the B2B customer experience. One key element is that of interdependence and value-exchange within the experience ( Figure 3 ).

In their report (Lemke et al 5 ), uncovered experience factors that were found to be statistically sound. They used individual interviews across 20 respondents. ‘ Important Factors ’ had to fulfi l two key criteria: (1) the factor had to be mentioned by at least 25 per cent of respondents (that is � 5), and (2) the factor had to have the power to differentiate between the three ‘ experience groups ’ – good experience, average experience and poor experience.

Taking both, the frequency count and the weighted variability index, as a basis, the important CE factors in the B2B context are as follows (in alphabetical order):

1. Extent of personal contact 2. Flexibility 3. Implicit understanding of customer needs

4. Knowledge 5. Pro-activity in checking that everything

is OK 6. Pro-activity in eliciting customer ’ s

objectives 7. Promise fulfi lment 8. Value for time

The authors go onto provide explanations based on those given by the respondents, and the meaning of the factors is discussed. The defi nitions are grounded in original quotes, with each factor offering two extreme views (these are outlined within Appendix B ).

This starts to highlight the areas of importance within the B2B experience, based on experience-orientated research. The B2C model developed from the total research project into mainly B2C, with input from B2B forms Appendix C . Although insightful, it uses only a limited research base of 20 respondents; nonetheless, it does start to inform the B2B experience from a researched perspective.

They also highlight ( Figure 4 ) central elements to the customer experience along four dimensions:

Personalisation Customisation

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Figure 3 : Value creation as organisational glue.


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Choice Consistency

Personalisation emerges as the lead area, followed by customisation. This points to a requirement for a more bespoke, individual experience as opposed to a mass market one-size-fi ts-all approach.

Ease of Doing Business In this paper, 6 the use of ‘ ease of doing business ’ is explored as a measure of the supplier – buyer relationship within the supply chain. It aims to establish the underlying factors of what ‘ ease of doing business ’ actually means within the supplier – customer interface. This may have potential implications for the B2B customer experience as a construct of the B2B CE.

The research paper approaches the subject from a customer service / customer satisfaction perspective aiming to develop Ease of Doing Business (EODB) as measure of the supplier – customer relationship.

The research used 372 responses, with over 60 per cent having had over 10 years experience in professional procurement positions.

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EODB has three core determinants:

1. Informational and material services 2. Financial contract services 3. Personal relations services

These were further expanded to include additional elements within each of the determinants ( Table 5 ).

A correlation was run between EODB and percentage volume purchased and years

Figure 4 : B2B & B2C importance by key element.

Table 5 : Core determinants of EODB

Informational and material services

On time deliveriesInside sales representativesQuote quality and turnaroundResolution of pricing and

negotiation issuesInventory availability

Financial contract services

Contract turnaround timeContract negotiationResolution of non-conforming

materialReturn material authorisation

issuesCredit terms and credit limits

Personal contact services

Technical support personal availability

Customised operationsOutside sales representative

availabilityWeb enabled e-servicesResponsivenessOrder follow-up



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in the relationship. This supported evidence that a relationship existed between EODB and percentage volume purchased.

More unexpectedly, no correlation could be established between years in a relationship and the percentage business carried by that supplier. The length of time in a business relationship does not appear to carry the same signifi cance or value as good business performance: You are only as good as your last order fulfi lment.

The areas that linked strongly to EODB were negotiating contracts, technical support provision and customisation. In addition to these, the following were also seen as signifi cant: contact availability, responsiveness, follow-up and coordination.

SCS took the fi ndings from the research, and extended them to embrace both supplier and customer groups ( Figure 5 ), as the factors are applicable for both relationships.

This starts to highlight and validate the key components of EODB that have resonance within the B2B experience context. It also provides focus on the elements needed in

order to maintain business on the supplier or customer interface.

The B2B buying process for services is the focus for this paper 7 , which starts by determining level of importance within the B2B relationship. This in turn is premised on understanding where the service stands on the customer ’ s priority list: strategic long-term alliance or purely transactional one-off relationship.

It highlights the following as important within the development of a positive B2B relationship:

Problem resolution Process fl exibility and adaptation Needs assessment Pro-active communication Defi ning customer wants Adaptability and willingness to change Needs-related solutions

It further underscores the move towards customer needs-based solutions, with correctly aligned commercial processes. It is

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Figure 5 : EODB extension to include two groups; customers & suppliers


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clear that some / all of these factors have relevance within the B2B experience.

The emotional and rational elements of the B2B experience are raised 8 as they become increasingly important. Emotional motivation plays a key role across all industries, including manufacturing. It is often overlooked within the B2B environment as hard business processes and metrics tend to dominate.

The B2B E covers all the channels and often involves numerous players across the organisation; their needs will not be identical to those of the organisation, and therefore they seek a slightly different experience. 9 The marketing manager may look on the suppliers ’ website for product specifi cations, brand logos, pantone references and so on. The procurement manager may look for order specifi cation, delivery schedules and so on. At present the web only meets 41 per cent of customers / buyers needs. (Forester research ‘ trends 2007 ’ e commerce in customer service).

Samraysinghe 10 within his research into the e-channel experience identifi ed both a hierarchy of experience levels and key characteristics for each level. He uncovered the following in order of importance:

Trust Experience / proposition matches expectations Integrity Customisation Ease of doing business Time Saving

Beaton (1995) 18 stated that customer ’ s commitment was pivotal in any relationship, developing through three phases.

Commitment Courtship bonding

forsaking others

= ++

Within the research outlined above, this

paper has looked for linkage between the elements that make up the B2B CE and the

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level of experience they generate. It is already clear that the common theme of trust emerges as central to the development of intimate / bonded customers through the experience they receive. Precisely what is meant by ‘ Trust ’ in a CE context is developed below.

The meaning of Trust

Defi nition

A Psychological state confi rming the intention to accept vulnerability based upon positive expectations of the intentions or behaviour of another. (Rousseau et al 1998) 19 A willingness to be vulnerable under conditions of risk and interdependence.

SCS has developed a number of conceptual equations that are believed to lead to the development of a bonded customer relationship. These bring in the other elements of interdependence, integrity and communication.

The SCS equations of customer experience Intimate / Bonded relationships

(a) Credibility + reliability + intimacy / customer / consumer orientation = Trust factor

(b) Time (as a customer) + interdependence + integrity + communication / trust factor = Bonding factor

(c) Memories + emotions + motivation + experience = Propensity to bond.

SCS has researched the various comparisons of trustworthiness and mechanisms of trust to highlight where the key traits come together to develop an enhanced B2B CE.

Table 6 shows that as the relationship (dependence / interdependence) increases the type of trust evolves, and with it greater understanding. This manifests itself in the development of bonding / advocacy.



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So if the experience continues to meet / exceed expectations, greater interdependence emerges, and both sides trust each other – they become bonded and advocates.

Factors that can infl uence

Positive expectations of the intentions The delivery of the intentions Behaviours of others

Within Appendix D, the different models of trust evaluated for this paper are listed out.

These traits form the backbone of the SCS ‘ CxP Model ’ . From ‘ meeting the market ’ all the way through to ‘ bonding ’ , the models indicate the traits / type of expectation and experience that must be developed to achieve a point on the CE ladder and bonded relationships.

These charts highlight how the different theories (Lewick & Bunker, Sheppard and Sherman & Mayer, Davis and Shooman) ( Figure 6 ) come together at different levels, and the key characteristics of each level.

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This correlates and links with creating trust model (p. 24).

A few relationships (customers) will develop a close identifi cation with the organisation and deep interdependence. It is important to make sure that they are the right customers and drive value. Integrity appears to be the key driver for trustworthiness.

This needs to be considered within the experience, if a trust-based bonded relationship is to develop.

At the bottom end, some B2B experiences will be based purely on the organisation ’ s ability to deliver against basic expectations. As long as the costs of failure to them outweigh the benefi ts of fulfi lment, they will remain engaged.

It is apparent that there is linkage between the fi ndings and research from customer intimacy and other theories on the role of trust within the customer experience. This is further supported when bringing together a combination of research from CRM and CM, and needs hierarchy ( Figure 7 ).

Table 6 : The grammars of trust: A model and general implications and the customer value chain

Form of dependence

Shallow dependence

Shallow interdependence

Deep dependence

Deep Interdependence

Risks Indiscretion Unreliability

Poor coordination Cheating Abuse Neglect Self-esteem

Misanticipation

Qualities of trustworthiness

Discretion Reliability Competence

Predictability Consistency

Integrity Concern Benevolence

Foresight Intuition Empathy

Mechanisms of trust Deterrence Discovery Obligation Internalisation

Relational mechanisms

Fate control Contiguity Network Shared meaning, values, products, goals

Institutional mechanisms

Historical records Enforcement

Communication and information systems

Quadratic control Socialisation Selection

Strategic alignment Common membership Discourse

Customer value chain

Awareness and identity

Relationship Community Advocacy bonding

Type of trust Calculus-based trust

Knowledge-based trust

Identifi cation-based trust


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This highlights that customer experience alone is not suffi cient to develop a bonded trust-based relationship: it is one among a number of factors. However, it does support the experience operating on a

number of levels against key experience events ( Table 7 ).

Within the B2B experience at level two, research 11 points to a number of factors being evident, if the customer

Figure 6 : Mapping and linking the key theories, highlighting the three levels.

Figure 7 : Pyramid of trust.



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fi el

d

Per

sona

lisat

ion

Cus

tom

isat

ion

Cho

ice

Con

sist

ency

Pro

ble

m r

esol

utio

n P

rop

osal

dev

elop

men

t N

eed

s un

der

stan

din

g N

eed

s d

evel

opm

ent

Nee

ds

refi n

emen

t P

erso

nalis

atio

n

Und

erst

and

Nee

ds

Do

wha

t yo

u sa

y D

o it

cons

iste

ntly

S

olve

my

pro

ble

ms

Acc

ess

Per

sona

l con

tact

On

time

del

iver

ies

Insi

de

sale

s re

pre

sent

ativ

es

Quo

te q

ualit

y an

d t

urna

roun

d

Res

olut

ion

of p

ricin

g an

d n

egot

iatio

n is

sues

In

vent

ory

avai

lab

ility

C

ontr

act

turn

arou

nd t

ime

Con

trac

t ne

gotia

tion

Res

olut

ion

of n

on-c

onfo

rmin

g m

ater

ial

Ret

urn

mat

eria

l aut

horis

atio

n is

sues

C

red

it te

rms

and

cre

dit

limits

Te

chni

cal s

upp

ort

per

sona

l ava

ilab

ility

C

usto

mis

ed o

per

atio

ns

Out

sid

e sa

les

rep

rese

ntat

ive

avai

lab

ility

W

eb e

nab

led

e-s

ervi

ces

Res

pon

sive

ness

O

rder

follo

w u

p

Enh

ance

d

1. E

xten

t of

per

sona

l con

tact

2.

Fle

xib

ility

3.

Imp

licit

und

erst

and

ing

of

cu

stom

er n

eed

s 4.

Kno

wle

dge

5.

Pro

-act

ivity

in c

heck

ing

that

ever

ythi

ng is

OK

6.

Pro

-act

ivity

in e

liciti

ng

cu

stom

er’s

ob

ject

ives

7.

Pro

mis

e fu

lfi lm

ent

Nee

ds

confi

rm

atio

n E

xpec

tatio

ns

Rel

atio

nshi

p

Par

amet

ers

Flex

ibili

ty

Rel

iab

ility

A

cces

s K

now

led

ge

Com

pet

ency

A

cces

s to

sp

ecia

lists

Va

lue

equa

tion

Valu

e co

-cre

atio

n

Sha

red

val

ue e

xcha

nge

Und

erst

and

str

ateg

y C

onta

ct a

t al

l lev

els

acro

ss

al

l fun

ctio

ns

Rig

ht fi

rst

time

ever

y tim

e.

SB

Us

Bon

ded

/ Int

imat

e Tr

ust

Trus

t In

terd

epen

den

ce

Inte

grity

C

omm

unic

atio

n

Trus

t C

omm

unic

atio

n C

o-w

orki

ng

Sha

red

str

ateg

y / V

isio

n A

ctin

g w

ith in

tegr

ity

Inte

rtw

ined

pro

pos

ition


148

Hollyoake

experience is moving towards and / or bonded state.

A common understanding exists of how the business works – development of a common context and understanding among the contacts on both sides. Key indicators are shared language and goals within a B2B bonded experience. This relates to the importance of building a shared view of how work gets done, how it is measured, and ultimately how and where the rewards fl ow.

Trust-building behaviours are demonstrated within the experience. This can be identifi ed through both sides being open and receptive, yet displaying high levels of discretion – employing active listening skills and encouraging open discussion in an environment where the issues will not be improperly disclosed or discussed.

People in both organisations working together (joint working) through frequent interactions, may not build trust, but joint working can open conversations that signal an individual ’ s readiness and approach to pursue. Thought therefore needs to be given to how both physical and virtual places can be developed where people can interact with one and another.

SCS research has highlighted that bonded customer relationships and trust are intrinsically linked. Furthermore, we have identifi ed another three factors that

contribute to the development of bonded customer relationships ( Table 8 ):

Integrity Interdependence Communication

CXP B2B MODEL We have bought together our own fi ndings, insights from literature and research to develop and form the CxP B2B model ( Figure 8 ). This continues to evolve as we research the B2B customer experience, and apply the practical insights emanating from our work within this area.

The model is dynamic in nature, and can fl ex to refl ect the changing nature and importance of the elements at each level.

CONCLUSION AND SUMMARY The different strands that go to make up this paper all tend to pull in the same direction.

From the experience strand, it was found that within the B2B relationship expectations exist around a product, organisation and brand: organisations must understand and deliver against those needs.

Improvements within CM and CRM have seen the start of a segmented approach to customers, and attempts at a segmented experience. Even small customers offer a multiplicity of contacts and good

———

Table 8 : Pillars of customer intimacy

Integrity Trust Interdependence Communication

The honesty, understanding and values within the relationship. You treat me with a degree of fairness, honesty and respect, that is diffi cult to fi nd elsewhere .

Reliability, meeting expectation and responsibility. I believe you place my best interests and my satisfaction ahead of the sale. You will tell me the truth because you would expect me to do the same for you .

Reliance of both the organisation / brand / service and customer on each other within the relationship. You make me feel part of the team and value the part I play .

Open access, when and however the need to share something arises. If you continue to treat and deal with me as an individual, I will continue to prefer you as my company of choice .

Source : Hollyoake, 2002.



149

communication, and consistent value-adding contact comes out as consistently important.

An area that emerges within the B2B relationship and its impact upon the experience is joint working and co-creation.

The experience is further enhanced through a formalised strategic management of the relationship through a strategic business unit or similar arrangement.

Above all, it is the continual contact across multi-level, multi-functions and joint working / co-creation that differentiates the B2B experience from the B2C.

It is not so much the relationship or the way customers are managed that differentiates, as this has become broadly similar. It is the experience developed through the relationship that makes the big difference.

The literature review points to the existence of similarities within the areas of expectation, creation and delivery through experience at the core of customer experience management. The ability to differentiate through expectations and

experience management also hold signifi cance for the B2B sector.

Within the B2B sector, professionals are often the key experience interface. They may develop a far more rational and detached approach to the delivery of expectations through the experience.

A key difference emerging as a driver behind B2B performance is that buyers may not actually use the product, but will be focused on creating downstream value: they are looking for support and risk reduction.

All the writers point towards a layered experience, with some areas having greater importance and signifi cance than others. This also holds true with the B2B sector, with suppliers differentiating themselves through the level of experience they deliver.

Finally, the research, although limited in nature, allows the extraction of meaningful insights for the B2B CE.

The common denominator across the research points to trust as being pivotal

Figure 8 : CxP ~ B2B model of customer experience.


150

Hollyoake

to the B2B experience. This is supported through other key characteristics of integrity, communication and interdependence, as indicated in Figure 9.

Indicative insight points to the experience operating on a number of levels against key factors at each level. These factors differ from the B2C experience, as they refl ect the more professional and rational nature of the B2B experience.

Across all of the research reviewed, a layered approach to the B2BE is evident. The involvement of professionals, rational and detached nature to expectation management and experience also come through in terms of the key factors at each level.

However, before embarking on the pursuit of a bonded experience with every customer, it is important to understand your importance within the overall B2B relationship. The pursuit of this level or experience places value into the experience

that is diffi cult to realise with the level of value you gain. In essence, segment your customers fi rst and be clear where and with whom to develop experience at the appropriate level.

At the base level, it appears that the key drivers revolve around the buyer(s) procurement teams expectations; that you can actually undertake business with each other. The experience of doing this will indicate to them whether or not you can fulfi l this base level. It is all about reliability, consistency, dependability, problem resolution, appropriate contact, choice and fl exibility. Once an organisation has achieved the delivery of a consistent experience meeting the base expectations, we identifi ed key areas that enhance the B2BE. These coalesce around co-creation of value, strategic understanding and contact at all levels across the organisation, working within strategic business units, fl exibility and pro-activity.

Finally, the relationship moves into what we refer to as a ‘ bonded experience ’ . We

Figure 9 : The four pillars of a ‘ Bonded ’ B2B CE.



151

identifi ed that nearly all the research points to trust as being at the centre of the bonded experience. However, we have also identifi ed supplementary areas that support trust at this level to develop a bonded experience, as we believe that trust alone is not suffi cient.

DISCLAIMER Over the last couple of years, John Ozimek has provided occasional advice and support to Springboard Consulting Ltd. This research was carried out on an ad hoc basis, and no commercial ongoing relationship exists between John Ozimek and this organisation.

REFERENCES 1 Schmitt , B . H . ( 2003 ) Customer Experience

Management . Hoboken, NJ: Wiley . 2 Shaw , C . ( 2005 ) Revolutionize Your Customer

Experience . Basingstoke: Palgrave Macmillan . 3 Smith , S . and Wheeler , J . ( 2002 ) Managing the

Customer Experience . Harlow: Prentice Hall . 4 Hollyoake , M . J . ( 2004 ) Do Virtual Organisations

Deliver More Effective Customer Management?: An Investigation into the Nature of Customer Management within a Virtual Working Environment and if it is Positive . Henley Management College .

5 Lemke , F . , Clark , M . and Wilson , H . ( 2006 ) What Makes a Great Customer Experience . The Hemley Center for Customer Management . Research reports 2006 series .

6 Stading , G . and Altay , N . ( 2007 ) Delineating the ‘ ease of doing business ’ construct within the supplier-customer relationship interface . Journal of Supply Chain management 43 (2) : 29 – 38 .

7 Selling services: A brave new world; 14 September 2005, [email protected] .

8 Building loyalty through customer experience; 26 June 2008, [email protected] .

9 IBM WebSphere Commerce: 2008 Q4 Next Generation B2B E-Commerce .

10 Samraysinghe , R . ( 2001 ) An Investigation into the Consumer Behavioural Infl uences During the Adoption of Innovation, with Particular Reference to Direct Home Shopping Retail Channels . Henley Management College .

11 IBM Institute for knowledge-based organisations: Trust is critical, 10-02 .

12 SCS Ltd Consulting . 13 SCS Ltd Directors and Associates . 14 Shaw , C . and Ivens , J . ( 2002 ) Building Great Customer

Experience . Basingstoke: Palgrave Macmillan . 15 Henley Business School . 16 CMO Council . ( 2009 ) Turning Customer Pain into

Competitive Gain . 17 Linked in: Customer Professionals Group Qtr1

2009, http://www.linkedin.com/home?myGroups= & trk=hb_side_grps .

18 Beaton , M . and Beaton , C . ( 1995 ) Marrying service providers and their clients: A relationship approach to services management . Journal of Marketing Management 11 (1 – 3) : 55 – 70 .

19 Rousseau , D . M ., Sitkin , S . B ., Burt , R . S . and Camerer , C . ( 1998 ) Not so different after all: A cross discipline view of trust. Academy of Management Review 23 (3) : 393 – 404 .

20 Lewicki , R . J . and Bunker , B . B . ( 1996 ) Developing and Maintaining Trust in Work Relationships. In: R. M. Kramer and T. R. Tyler (eds.) Trust in Organizations: Frontiers of Theory and Research . Thousand Oaks, CA: Sage. pp. 114 – 139 .


152

Hollyoake

Table A1 : Four levels of potential organisational experience

Stage Traits

Na ï ve Product focused: Price and features led Reactive to customer demands So product focused they do not measure customer satisfaction Very physically based CE Not focused on employees who are treated poorly and not given any authority to recompense customers Product-siloed organisation Un-coordinated in its approach to customers, who are asked to call on separate numbers for different parts of the organisation Sales, effi ciency and productivity driven KPIs Focused on rewarding employees based on sales, productivity and effi ciency measures Dictatorial in which channel the customer uses.

Transactional Physically biased with a few customer KPIs Functionally organised and has recognised the need for customer service Provides ‘ 800 ’ free phone numbers for customer contact, but has extensive menus to screen calls Biased towards customers physical expectations Senior managers spend little time with customers Does not have a complete customer systems view Has no defi ned customer experience Recruits people with right attitude, rather than just skills Focuses training on how to deal with diffi cult customers Gives employees some limited authority

Enlightened Have defi ned their customer experience Focus on stimulating planned emotions and build these into the design of their customer experience Recognise customers have emotional expectations and plan how to meet and exceed these Have started to align the employee experience and the customer experience Employ people with emotional capabilities Look at end to end customer experience Have appointed a VP of customer experience or established a customer experience council Involve customers in the design of their processes Integrate systems to achieve a ‘ a complete view of the customer ’ Use CE measures, which account for a large part of people’s bonuses.

Natural A complete focus on the customer Focused on the customer experience that it is in the organisation’s DNA A deliberate CE and a clearly defi ned CE statement Systems build to improve CE Culture that is designed and aligned to CE Focused upon depth of emotion Consciously used sense to provide a captivating experience Recruited people who are good at acting An integrated approach to the customer Understood customer sensory expectations

APPENDIX A See Table A1 .



153

Tab

le B

1 :

Wha

t m

akes

a g

reat

cus

tom

er e

xper

ienc

e

Fact

or

Exp

lana

tion

Exc

eed

s ex

pec

tatio

ns

Falls

sho

rt o

f ex

pec

tatio

ns

Per

sona

l Im

per

sona

l

Ext

ent

of

per

sona

l con

tact

Th

e ex

tent

of p

erso

nal c

onta

ct r

ange

s fr

om ‘ p

erso

nal ’

to ‘ i

mp

erso

nal ’ .

The

fa

ctor

is d

efi n

ed a

s ‘ T

he e

xten

t to

whi

ch

the

com

pan

y d

eals

with

the

cus

tom

er

thro

ugh

per

sona

l con

tact

met

hod

s. S

ome

com

pan

ies

dea

l with

the

cus

tom

er v

ia

per

sona

l con

tact

met

hod

s, fo

r ex

amp

le,

Face

-to-

Face

(per

sona

l). B

y co

ntra

st, t

he

cust

omer

has

no

per

sona

l con

tact

with

th

e co

mp

any,

for

exam

ple

, Web

-bas

ed

or b

ased

on

stan

dar

dis

ed p

aper

wor

k (im

per

sona

l)

The

head

of a

n IT

dep

artm

ent

emp

hasi

sed

: The

se

two

sup

plie

rs a

re s

imila

r, b

ecau

se w

ith t

hese

tw

o I w

ould

hav

e m

ore

a fe

elin

g of

per

sona

l con

tact

th

roug

h a

sale

s p

erso

n. It

mig

ht b

e p

hone

con

tact

or

thr

ough

em

ail,

but

I ’ m

act

ually

tal

king

to

a p

erso

n.

It co

uld

eve

n b

e a

face

-to-

face

con

tact

.

The

third

sup

plie

r is

diff

eren

t in

tha

t I a

m d

ealin

g w

ith a

web

site

. The

typ

ical

res

pon

ses

star

t w

ith

‘ Dea

r C

usto

mer

’ . Th

is is

less

per

sona

l. I g

et t

he

info

rmat

ion,

but

I d

on ’ t

have

som

ethi

ng li

ke a

cl

ient

-man

aged

feel

ab

out

it .

Flex

ible

In

fl exi

ble

Flex

ibili

ty

The

will

ingn

ess

and

ab

ility

to

mod

ify t

he o

fferin

g in

res

pon

se t

o th

e cu

stom

er’s

sp

ecifi

c ne

eds

or c

hang

ing

req

uire

men

ts. S

ome

com

pan

ies

are

will

ing

and

ab

le t

o m

odify

the

offe

ring

(fl ex

ible

), w

hile

oth

ers

stic

k to

a s

tand

ard

ised

ap

pro

ach

and

are

unw

illin

g to

fl ex

ex

istin

g ag

reem

ents

(infl

exi

ble

).

A p

rogr

amm

e m

anag

er in

mar

ketin

g ex

pla

ins:

I t

hink

it c

omes

dow

n to

fl ex

ibili

ty …

I th

ink

thes

e tw

o b

usin

esse

s –

thes

e tw

o su

pp

liers

– h

ave

pro

ven

to b

e fl e

xib

le, i

n te

rms

of t

he s

ervi

ces

they

of

fer,

whe

n th

ey a

re a

vaila

ble

, in

mee

ting

my

bus

ines

s ne

eds

and

so

fort

h. T

hey

are

sim

ilar

in t

his

resp

ect.

Whe

reas

with

thi

s la

rge

orga

nisa

tion

(nam

es

com

pan

y), y

ou t

end

to

have

to

fi t in

with

the

m.

For

inst

ance

, if y

ou w

ant

ad-h

oc c

onsu

ltanc

y se

rvic

es a

t sh

ort

notic

e, it

will

hap

pen

with

the

fi r

st t

wo

orga

nisa

tions

. Whe

reas

the

se p

eop

le,

(res

pon

den

t p

oint

s to

larg

e or

gani

satio

n) it

is a

ve

ry r

igor

ous

pro

cess

you

’ ve

got

to g

o th

roug

h in

ord

er t

o se

cure

the

ser

vice

s. B

esid

es, y

ou

have

to

pay

for

it at

sta

ndar

d r

ates

. You

’ ve

got

to fi

t in

to t

heir

pro

cess

es, t

heir

fi nan

cial

con

trol

s.

This

isn ’

t al

way

s go

od w

hen

you

just

wan

t to

get

so

met

hing

don

e ve

ry v

ery

qui

ckly

.

AP

PE

ND

IX B

Se

e T

able

B1 .


154

Hollyoake

Tab

le B

1 :

Con

tinue

d

Fact

or

Exp

lana

tion

Exc

eed

s ex

pec

tatio

ns

Falls

sho

rt o

f ex

pec

tatio

ns

Dee

p u

nder

stan

din

g of

cus

tom

er n

eed

s U

nder

stan

din

g of

cus

tom

er n

eed

s

Imp

licit

und

erst

and

ing

of c

usto

mer

ne

eds

The

exte

nt t

o w

hich

the

sup

plie

r im

plic

itly

und

erst

and

s th

e ne

eds

of t

he c

usto

mer

in

ter

ms

of t

he n

atur

e of

the

bus

ines

s,

the

cont

ext

with

in w

hich

the

pro

duc

t or

se

rvic

e is

bei

ng d

eliv

ered

and

the

sp

ecifi

c re

qui

rem

ents

of t

he c

usto

mer

thr

ough

the

ap

plic

atio

n of

exi

stin

g kn

owle

dge

hel

d

with

in t

he s

upp

lier.

Som

e co

mp

anie

s ha

ve a

dee

p u

nder

stan

din

g of

cus

tom

er

need

s b

ased

on

prio

r kn

owle

dge

(d

eep

und

erst

and

ing)

, whi

le fo

r ot

her

com

pan

ies,

the

cus

tom

er h

as t

o ex

pla

in

the

natu

re o

f th

e b

usin

ess,

the

con

text

and

the

re

qui

rem

ents

(poo

r un

der

stan

din

g).

A s

enio

r m

arke

ting

man

ager

des

crib

ed t

his

poi

nt a

s fo

llow

s: T

hese

tw

o su

pp

liers

are

si

mila

r, b

ecau

se t

hey

have

an

inte

rest

and

an

und

erst

and

ing

for

the

area

in w

hich

I w

ork.

So

that

wou

ld b

e in

the

sen

se t

hat

whe

n yo

u ex

pla

in

a p

roje

ct, y

ou d

on ’ t

have

to

exp

lain

the

con

text

.

The

cont

ext

is u

nder

stoo

d a

nd t

here

fore

, the

ir of

fer

is m

ore

in t

une

with

you

r ne

eds

as a

res

ult.

A

nd t

he o

pp

osite

to

that

is if

you

hav

e to

exp

lain

th

e co

ntex

t an

d y

ou ’ r

e no

t q

uite

sur

e if

they

un

der

stan

d it

or

not.

The

re is

no

confi

den

ce

that

the

y ei

ther

wan

t to

or

do

und

erst

and

you

r co

ntex

t fo

r th

e se

rvic

e.

Pos

sess

kno

wle

dge

whi

ch c

an b

e ap

plie

d t

o ad

d v

alue

D

o no

t p

osse

ss k

now

led

ge

Kno

wle

dge

Th

e ex

tent

to

whi

ch a

com

pan

y p

osse

sses

th

e kn

owle

dge

/ exp

ertis

e to

ad

d v

alue

to

the

cust

omer

. Som

e co

mp

anie

s p

osse

ss

know

led

ge / e

xper

tise

and

the

reb

y ad

d

valu

e to

the

cus

tom

er (p

osse

ss

know

led

ge w

hich

can

be

app

lied

to

add

val

ue),

whi

le o

ther

s d

o no

t p

osse

ss

know

led

ge / e

xper

tise

to a

dd

val

ue (d

o no

t p

osse

ss k

now

led

ge).

A m

arke

ting

man

ager

in E

-Com

mer

ce e

mp

hasi

sed

: S

ome

sup

plie

rs h

ave

a lo

t of

ind

ustr

y ex

per

ienc

e.

It’s

a d

iffer

ence

wor

king

with

sup

plie

rs t

hat

have

a

wid

er k

now

led

ge o

f the

ind

ustr

y. T

hey ’

ll ty

pic

ally

co

me

with

mor

e id

eas

that

are

sui

tab

le. S

o, t

hey

have

sug

gest

ions

tha

t su

pp

lem

ent

the

thin

gs

that

we

do

or t

hey

have

idea

s ab

out

thin

gs t

hat

we

coul

d t

ry. A

nd a

lso

the

wor

k th

at t

hey ’

ll d

o it

pro

bab

ly m

ore

app

rop

riate

and

not

so

man

y ch

ange

s ne

ed t

o b

e m

ade.

Oth

ers

sup

plie

rs a

re la

ckin

g in

tha

t kn

owle

dge

.

Pro

activ

ely

chec

king

tha

t ev

eryt

hing

is O

K

Ass

umin

g th

at e

very

thin

g is

OK

Pro

-act

ivity

in

chec

king

tha

t ev

eryt

hing

is

OK

The

exte

nt t

o w

hich

the

com

pan

y p

roac

tivel

y ch

ecks

tha

t ev

eryt

hing

is

OK

. Som

e co

mp

anie

s ar

e p

roac

tive

in c

heck

ing

that

eve

ryth

ing

is O

K

(pro

activ

ely

chec

king

tha

t ev

eryt

hing

is

OK

), w

hile

oth

ers

assu

me

that

eve

ryth

ing

is O

K (a

ssum

ing

that

eve

ryth

ing

is O

K).

A q

ualit

y m

anag

er h

ighl

ight

s: T

hese

sup

plie

rs h

ave

rep

rese

ntat

ives

. The

oth

er s

upp

liers

will

com

e in

and

see

us

on a

fairl

y re

gula

r b

asis

. So

we

have

a r

egul

ar c

onta

ct –

the

y co

me

to c

heck

th

at e

very

thin

g is

OK

. The

y ty

pic

ally

ask

whe

ther

ev

eryt

hing

is O

K.

This

sup

plie

r ‘ is

no

cont

act

at a

ll ’ , I

mea

n, t

he fi

rst

sup

plie

r ha

s a

rep

. but

we

don

’ t se

e hi

m a

t al

l. Th

e su

pp

lier

just

ass

umes

tha

t ev

eryt

hing

is O

K.



155

Tab

le B

1 :

Con

tinue

d

Fact

or

Exp

lana

tion

Exc

eed

s ex

pec

tatio

ns

Falls

sho

rt o

f ex

pec

tatio

ns

Pro

activ

e in

elic

iting

cu

stom

er’s

ob

ject

ives

N

o at

tem

pt

to e

licit

cust

omer

’s o

bje

ctiv

es

Pro

-act

ivity

in

elic

iting

cu

stom

er’s

ob

ject

ives

The

exte

nt t

o w

hich

the

com

pan

y ac

tivel

y se

eks

to e

licit

the

obje

ctiv

es

the

cust

omer

has

in p

urch

asin

g th

e p

rod

uct

or s

ervi

ce. S

ome

com

pan

ies

are

pro

activ

e in

ach

ievi

ng t

his

(pro

activ

e),

whi

le o

ther

s m

ake

no a

ttem

pt

to

und

erst

and

the

cus

tom

er’s

ob

ject

ives

(n

o at

tem

pt)

.

A g

roup

pro

duc

t m

anag

er in

the

mar

ketin

g d

epar

tmen

t m

ade

the

follo

win

g co

mm

ent:

The

y (s

upp

liers

) ask

me

wha

t I w

ant

– w

hat

I try

to

achi

eve.

The

y as

k m

e ab

out

my

obje

ctiv

es. T

hey

don

’ t sa

y ‘ lo

ok t

his

is w

hat

we

have

’ ; th

ey t

ry t

o fi n

d o

ut w

hat

I wou

ld li

ke t

o ac

hiev

e an

d w

hat

my

obje

ctiv

es a

re. A

nd e

ven

if I s

ay ‘ I

wou

ld li

ke t

o d

o X

’ , th

ey p

rob

ably

say

‘ I u

nder

stan

d y

ou w

ant

to d

o X

, but

just

exp

lain

to

me

a lit

tle b

it w

hy y

ou w

ant

to d

o X

, so

that

I un

der

stan

d y

our

mot

ivat

ions

b

ette

r ’ . B

ecau

se e

ven

if I t

hink

I kn

ow w

hat

I wan

t, it

is h

elp

ful w

hen

they

ask

me

som

e q

uest

ions

to

und

erst

and

my

obje

ctiv

es, s

o th

at I

can

und

erst

and

the

m b

ette

r m

ysel

f.

Kee

p p

rom

ises

D

o no

t ke

ep p

rom

ises

Pro

mis

e fu

lfi lm

ent

The

exte

nt t

o w

hich

the

com

pan

y ke

eps

pro

mis

es t

hey

have

mad

e to

the

cu

stom

er. S

ome

com

pan

ies

alw

ays

keep

pro

mis

es t

hey

have

mad

e (k

eep

p

rom

ises

), w

hile

oth

ers

fail

to k

eep

the

ir p

rom

ises

(do

not

keep

pro

mis

es).

We

have

als

o go

od e

xam

ple

s,

of c

ours

e. W

e al

so h

ave

sup

plie

rs t

hat

do

wha

t th

ey s

ay a

nd t

hey

are

true

to

thei

r w

ord

.

A m

arke

ting

man

ager

and

PA

for

CE

O in

mar

ketin

g po

ints

out

: The

se s

uppl

iers

kee

p th

eir p

rom

ise

– no

t al

l sup

plie

rs d

o th

at. M

ayb

e th

ey d

on ’ t

send

th

eir

confi

rm

atio

n in

tim

e or

not

at

all.

Som

etim

es

they

are

aw

kwar

d w

ith t

he p

rice

and

cha

rge

som

ethi

ng d

iffer

ent

to w

hat

has

bee

n ag

reed

. Or

they

don

’ t d

o th

e jo

b a

nd w

hen

I rin

g th

em t

o as

k fo

r th

e re

ason

the

y sa

y ‘ o

uhhh

h, w

e ha

d s

ickn

ess

in t

he c

omp

any ’

or

‘ we

sent

it t

o C

hina

inst

ead

of

Ger

man

y ’ o

r w

hate

ver.

They

com

e up

with

all

sort

s of

exc

uses

.


156

Hollyoake

APPENDIX C See Figure C1 .

APPENDIX D

MODELS OF TRUST USED WITHIN THE EVALUATION OF THIS PAPER Calculus-based trust Based upon a calculation that an individual will achieve what they say they can do, as the costs of failure to them outweigh the benefi ts of completion, and therefore acts as a deterrent.

Central to this view is control , where the individual ’ s actions are controlled via monitoring and the knowledge that the trustor will withdraw from future exchanges should their trust be violated.

Knowledge-based trust Relies on information to generate predictability in the likely behaviour and

actions of another. Central to this view is time, as knowledge-based trust requires interaction and communication to allow a degree of certainty in expectations to develop.

Identifi cation-based trust Based on clear identifi cation with the desires, intentions, values of another to the extent that it is possible to act for, think and feel like the other party. Where this takes place, Lewicki and Bunker (1996) 20 suggest that ‘ second order learning ’ begins to take place. An understanding of what must be done to maintain the other party ’ s trust is developed and behaviour adjusted accordingly. Identifi cation-based trust does not operate in isolation from calculus- and knowledge-based

Figure C1 : Clarke, Lemke; Model of customer experience.



157

trust. The processes relevant to these forms of trust help to contribute towards the creation of identifi cation-based trust. Such processes are also supported by four additional types of activities:

Developing a collective identity Co-location in the same property Creating joint products or goals Committing to commonly shared values

————

Competence- and benevolence-based trust ( Figure D1 ) Benevolence-based: An individual will not intentionally harm another when given the opportunity to do so.

Competence-based: A relationship in which an individual believes that another person is knowledgeable about a given subject area.

See Figures D1 and D2 .

Figure D1 : Competence and benevolence and their role in trust development. Source : IBM – TRUST IS CRITICAL


158

Hollyoake

Figure D2 : Time/need and their role in the reduction of mistrust.


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Original Article The four pillars: Developing a ‘ bonded ... · They often include multiple contacts at differing levels across a large ... the importance of the overall B2B relationship: